BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    SB 1361             
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          |AUTHOR:        |Nielsen                                        |
          |---------------+-----------------------------------------------|
          |VERSION:       |February 19, 2016                              |
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          |HEARING DATE:  |April 13, 2016 |               |               |
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          |CONSULTANT:    |Scott Bain                                     |
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           SUBJECT  :  Medi-Cal:  eyeglasses

         SUMMARY  :1.  Provides Medi-Cal coverage of one pair of eyeglasses provided  
          every two years for an individual who is 21 years of age or  
          older and who is unable to meet or exceed the driver's license  
          vision standards established by the Department of Motor  
          Vehicles.
          Existing law:
          1)Establishes the Medi-Cal program, administered by the  
            Department of Health Care Services (DHCS) and under which  
            qualified low-income persons receive health care benefits. 

          2)Establishes a schedule of benefits under the Medi-Cal program.  
            Excludes specified optional benefits from coverage under the  
            Medi-Cal program, including optometric and optician services,  
            including services provided by a fabricating optical  
            laboratory, except for beneficiaries under the Early and  
            Periodic Screening Diagnosis and Treatment Program  
            (individuals under age 21), and beneficiaries receiving  
            long-term care in a nursing facility that is a skilled nursing  
            facility or intermediate care facility that is licensed as a  
            nursing facility. Optometry services in Medi-Cal were  
            reinstated (eye exams and procedures by optometrist) for  
            adults 21 and over in July 2010.

          3)Prohibits the Department of Motor Vehicles (DMV) from issuing  
            or renewing a driver's license to any person whose best  
            corrected visual acuity is 20/200 or worse in that person's  
            better eye, as verified by an optometrist or ophthalmologist. 
          
          This bill:
          1)Provides Medi-Cal coverage of one pair of eyeglasses provided  
            every two years for a Medi-Cal eligible individual who is 21  







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            years of age or older and who is unable to meet or exceed the  
            driver's license vision standards established by DMV.


          2)Permits DHCS to seek approval of any necessary state plan  
            amendments to implement this bill, 


          3)Implements this bill only to the extent that federal financial  
            participation is available and any necessary federal approvals  
            have been obtained.


          4)Permits DHCS to implement this section by means of all-county  
            letters, provider bulletins, or similar instructions, without  
            taking further regulatory action. 


           FISCAL  
          EFFECT  :  This bill has not been analyzed by a fiscal committee.

           COMMENTS  :  
           1)Author's statement.  According to the author, many low income  
            Californians in need of eyeglasses lack the money to buy them.  
            Working Californians who have impaired vision are not able to  
            fulfill their job duties effectively or safely. Californians  
            who failed the DMV's vision exam struggle each time they  
            drive. Restoring this service will keep people safer on the  
            road. Adults who are striving to go back to school or college  
            are not able to see well in class and will perform beneath  
            their capabilities. By restoring Medi-Cal's coverage for one  
            pair of eyeglasses every two years, Californians can get back  
            to work or school and be able to drive safely. People who are  
            on the Medi-Cal system often do not have the financial  
            resources to meet basic needs. According to Dr. Karrin Vallin,  
            the majority of her low-income patients come in for exams but  
            they simply do not have the money to purchase glasses for  
            themselves, and it is a low priority over the needs of their  
            children. By restoring the coverage of eyeglasses, low income  
            individuals will be encouraged to visit their optometrists  
            more regularly. Eye exams can detect a number of ocular and  
            systemic diseases such as glaucoma, diabetes and hypertension.  
            Early detection of such illnesses can reduce cost to our  
            overall health system. Often patients are discouraged from  
            getting an exam, knowing they can't get glasses.








          SB 1361 (Nielsen)                                  Page 3 of ?
          
          

          2)Medicaid optional and mandatory benefits. States establish and  
            administer their own Medicaid programs and determine the type,  
            amount, duration, and scope of services within broad federal  
            guidelines. States are required to cover certain "mandatory  
            benefits," and can choose to provide other "optional benefits"  
            through the Medicaid program, for which they can receive  
            federal financial participation (federal "matching funds").  
            The federal Centers for Medicare and Medicaid Services  
            indicates the following are mandatory and optional benefits in  
            Medicaid:

           ---------------------------------------------------------------- 
          |                          |                                     |
          |    Mandatory Benefits    |          Optional Benefits          |
          |                          |                                     |
          |--------------------------+-------------------------------------|
          |                          |                                     |
          |       Inpatient         |       Prescription drugs           |
          |     hospital services    |                                     |
          |                          |                                     |
          |                          |       Clinic services              |
          |       Outpatient        |                                     |
          |     hospital services    |                                     |
          |                          |       Physical therapy             |
          |                          |                                     |
          |       Early and         |                                     |
          |     Periodic Screening,  |       Occupational therapy         |
          |     Diagnostic, and      |                                     |
          |     Treatment Services   |                                     |
          |     (EPSDT).             |       Speech, hearing and language |
          |                          |     disorder services               |
          |                          |                                     |
          |       Nursing facility  |                                     |
          |     services             |       Respiratory care services    |
          |                          |                                     |
          |                          |                                     |
          |       Home health       |       Other diagnostic, screening, |
          |     services             |     preventive and rehabilitative   |
          |                          |     services                        |
          |                          |                                     |
          |       Physician         |                                     |
          |     services             |       Podiatry services            |
          |                          |                                     |
          |                          |                                     |








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          |       Rural health      |       Optometry services           |
          |     clinic services      |                                     |
          |                          |                                     |
          |                          |       Dental services              |
          |       Federally         |                                     |
          |     qualified health     |                                     |
          |     center services      |       Dentures                     |
          |                          |                                     |
          |                          |                                     |
          |       Laboratory and    |       Prosthetics                  |
          |     X-ray services       |                                     |
          |                          |                                     |
          |                          |       Eyeglasses                   |
          |       Family planning   |                                     |
          |     services             |                                     |
          |                          |       Chiropractic services        |
          |                          |                                     |
          |       Nurse Midwife     |                                     |
          |     services             |       Other practitioner services  |
          |                          |                                     |
          |                          |                                     |
          |       Certified         |       Private duty nursing         |
          |     Pediatric and Family |     services                        |
          |     Nurse Practitioner   |                                     |
          |     services             |                                     |
          |                          |       Personal Care                |
          |                          |                                     |
          |       Freestanding      |                                     |
          |     Birth Center         |       Hospice                      |
          |     services (when       |                                     |
          |     licensed or          |                                     |
          |     otherwise recognized |       Case management              |
          |     by the state)        |                                     |
          |                          |                                     |
          |                          |       Services for individuals age |
          |       Transportation to |     65 or older in an Institution   |
          |     medical care         |     for Mental Disease (IMD)        |
          |                          |                                     |
          |                          |                                     |
          |       Tobacco cessation |       Services in an intermediate  |
          |     counseling for       |     care facility for the mentally  |
          |     pregnant women       |     retarded                        |
          |                          |                                     |
          |                          |                                     |
          |                          |       State Plan Home and          |








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          |                          |     Community-Based Services -      |
          |                          |     1915(i)                         |
          |                          |                                     |
          |                          |                                     |
          |                          |       Self-Directed Personal       |
          |                          |     Assistance Services - 1915(j)   |
          |                          |                                     |
          |                          |                                     |
          |                          |       Community First Choice       |
          |                          |     Option - 1915(k)                |
          |                          |                                     |
          |                          |                                     |
          |                          |       Tuberculosis Related         |
          |                          |     Services                        |
          |                          |                                     |
          |                          |                                     |
          |                          |       Inpatient psychiatric        |
          |                          |     services for individuals under  |
          |                          |     age 21                          |
          |                          |                                     |
          |                          |                                     |
          |                          |        Other services approved by  |
          |                          |the Secretary*                       |
          |                          |                                     |
          |                          |                                     |
           ---------------------------------------------------------------- 

          *This includes services furnished in a religious non-medical  
          health care institution, emergency hospital services by a  
          non-Medicare certified hospital, and critical access hospital.

          1)Background on Medi-Cal optional benefit elimination. In 2009,  
            the Legislature and Governor enacted AB 5 (Committee on  
            Budget, Chapter 20, Statutes of 2009), which eliminated some  
            optional benefits for adults that had been covered under  
            Medi-Cal. Optional benefits eliminated by AB 5 were  
            acupuncture services, audiology and speech therapy services,  
            chiropractic services, optometric and optician services,  
            including services provided by a fabricating optical  
            laboratory, podiatric services, psychology services, and  
            incontinence creams and washes. When the state eliminated  
            optional benefits, services that were previously provided by  
            an acupuncturist, podiatrist, a psychologist, which are no  
            longer covered by Medi-Cal can still be provided by a  
            physician. DHCS indicates its optional benefit exclusion  








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            policy also allows certain populations (pregnant women and  
            beneficiaries under 21 years old) to continue to receive these  
            optional services. DHCS also indicates all Medi-Cal eligible  
            beneficiaries can access optional benefit services in certain  
            settings, such as hospital outpatient departments or emergency  
            rooms, and some optional services (such as podiatry and  
            chiropractic services) can be received in Federally Qualified  
            Health Centers (FQHCs) and Rural Health Clinics (RHCs).

          Most of the General Fund savings from the optional benefit  
            elimination in AB 5 resulted from the elimination of adult  
            dental. Litigation brought by RHCs resulted in podiatry and  
            other services being reinstated at RHCs and FQHCs. Optometry  
            services were reinstated (eye exams and procedures by  
            optometrist) to adults 21 and over in July 2010, but all eye  
            appliances (glasses, contact lenses, low vision devices) and  
            dispensing optician services, including services provided by  
            fabricating optical laboratories for adults 21 and over, are  
            still excluded from coverage. Psychology services were  
            reinstated in January 1, 2014, and last session, the  
            Legislature and Governor reinstated some adult dental services  
            in AB 82 (Budget Committee, Chapter 23, Statutes of 2013), the  
            2013-14 budget health trailer bill. The Legislative Analyst's  
            Office estimates the General Savings from the elimination of  
            the optician/optical lab services benefit in Medi-Cal is $4.9  
            million in 2015-16. 

          2)Prior legislation. AB 1868 (Gomez of 2013), would have  
            provided Medi-Cal coverage of medical and surgical services  
            provided by a podiatrist within his or her scope of practice  
            that, if provided by a physician, would be considered  
            physician services, for services which can be provided by  
            either a physician or a podiatrist.  AB 1868 was held on the  
            Senate Appropriations Committee suspense file.
            
          3)Support.  This bill is supported by VSP Global and the  
            California Optometric Association (COA). COA argues a recent  
            study by Ingenix Consulting shows individuals with eyeglass  
            coverage are at least two times more likely to receive a  
            comprehensive eye exam compared to those who do not have  
            eyeglass coverage. Restoring the eyeglass benefit for adults  
            in the Medi-Cal program means they would be more likely to  
            receive an eye exam, which often leads to early diagnosis of  
            diabetes, heart disease and high blood pressure - major cost  
            drivers in California's health care system. Early diagnosis  








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            means lower treatment cost for these conditions and better  
            patient outcomes. COA states eye care is a small fraction of  
            the health care market with a far-reaching impact because if  
            someone cannot see, he/she will have a more difficult time  
            finding work, driving, cooking, and ultimately have a higher  
            chance of disability. A study found that individuals with  
            vision problems are more likely to experience social isolation  
            and a greater tendency to have other health problems.  A pair  
            of eyeglasses can make all the difference in helping  
            individuals to regain their confidence and live independently.  
            As the aging population rapidly grows, vision problems and  
            eye-related diseases are expected to double.
          
          4)Policy questions. 
             a)   In 2014-15, the Senate version of the budget proposed to  
               restore the optional benefits eliminated in 2009, but this  
               proposal was not included in the final budget agreement.  
               Several optional benefits eliminated by AB 5 have since  
               been restored, but other important benefits, including  
               podiatry and glasses and contact lenses, have not been.  
               Which Medi-Cal optional benefits should be restored?

             b)   This bill would restore Medi-Cal coverage of one pair of  
               eyeglasses provided every two years for an individual who  
               is 21 years of age or older and who is unable to meet or  
               exceed the driver's license vision standards established by  
               DMV. The DMV's vision screening standard is the ability to  
               see 20/40 with both eyes together, with or without  
               corrective lenses. Individuals with extremely poor vision  
               (visual acuity of 20/200 or worse), may not be scheduled  
               for a drive test. Existing Medi-Cal regulations already  
               contain a vision standard which makes it easier for  
               beneficiaries to obtain glasses. One proponent of this bill  
               (an optometrist) explains the rationale for the standard in  
               this bill is the previous Medi-Cal adult vision standard  
               resulted in people with lessor vision prescription needs  
               being eligible, but who do not really need a correction.  
               Should this vision benefit restoration be limited to  
               individuals who meet this DMV vision standard or should the  
               current Medi-Cal standard apply?

           SUPPORT AND OPPOSITION  :
          Support:  American Federation of State, County and Municipal  
                    Employees, AFL-CIO
                    Association of California Healthcare Districts








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                    California Optometric Association
                    County Health Executives Association of California 
                    National Association of Social Workers-California  
                    Chapter 
                    VSP Global, Inc.
                    Western Center on Law & Poverty
                    An individual 
          
          Oppose:   None received
          

          
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